When real GDP is falling, the economy is experiencing
a. a recession.
b. a financial crisis.
c. an expansion.
d. equilibrium.
e. environmental deterioration.
A
Economics
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Contractionary fiscal policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.
Economics
If monetary policy is used to control real GDP then fiscal policy is a major determinant of
A) interest rates and economic growth. B) interest rates and the foreign trade deficit. C) unemployment and the foreign exchange rate. D) None of the above.
Economics